TikTok accepts Trump's deal to continue operating in the United States

BarcelonaByteDance, owner of the short-video platform TikTok, has agreed to sell its US operations to a conglomerate led by American investors. This follows Trump's demands, who, citing security concerns and the risk of espionage, insisted that the app be divested of Chinese ownership to continue operating legally. After months of negotiations—and extensions to the ultimatums—the parent company has announced it will relinquish its assets in the country.

The new American subsidiary will be majority-owned by the tech giant Oracle, chaired by Larry Ellison, who plays a leading role in the transformation of the US media landscape and is known for his affinity with the Republican president. Joining him in this venture will be the private equity firm Silver Lake and the UAE-based investment fund MGX. The three companies will collectively own 45% of the shares, while ByteDance's main investors will have to settle for a combined 33%. The parent company will retain control of only 18% of the subsidiary. This agreement is still pending signature and should be finalized by January 22nd at the latest, which is when the deadline set by the U.S. Department of Justice for allowing a Chinese TikTok to operate in the United States expires. The rule requires that ByteDance cannot access the servers that store user data for its app. In any case, the closure does not mean the disappearance of the parent company from the United States, as it will be able to continue operating in the country in the areas of e-commerce, advertising, and marketing. The agreement should mark the end of the uncertainty surrounding TikTok that arose five years ago in the United States, when the first national security concerns related to the app emerged. In the U.S., some 130 million citizens have accounts on the platform. Although the amount of the transaction has not been made public, a few months ago US Vice President JD Vance stated that the value of this subsidiary conglomerate would be close to $14 billion.